Mainstay Insurance

Pay transparency legislation is not in Ontario (YET), but it is working its way into law in Prince Edward Island, Nova Scotia, British Columbia, Newfoundland & Labrador. 

Generally this legislation prohibits an employer from asking about a prospective hires wage history.  The article provides more below, but be aware as this may affect you if hiring remote workers in other provinces…

Pay transparency became the topic of much discussion when the province of Ontario tabled legislation in 2018. While this legislation never came into effect (still to this day) other provinces have enacted pay transparency laws and others are considering doing so.

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Important notice to Ontario Residents that you may wish to share with your employees

Ontario announced (in the fall of 2021) that they will be eliminating paper renewal notices for driver’s licences and health cards and shifting to digital reminders like emails and phone calls.  I only noticed this as I renewed my drivers license and was prompted to set up e-mail or text reminders.

Why is this important? and what’s the relevance to our benefit plan?

Employees need to have provincial health coverage in order to be eligible for most benefit plans.  During the renewal process they will be asked about residency (this is why we warn employers about the risks to employees working out of province, especially abroad) and Service Ontario may reach out to confirm it (see clip below).

The web page to renew your Ontario Drivers license and OHIP card is below.

https://www.ontario.ca/page/renew-drivers-licence

An article showing the chan

https://www.todocanada.ca/service-ontario-you-will-no-longer-receive-paper-renewal-notices-for-drivers-license-health-card/

Saturday, April 15, 2023 – 6:30pm        

The theme for Hands Across the Nations 17^th annual Great Gourmet Give is “Experience the Magic of Giving”.

Radio Personality, John Moore of “Moore in the Morning” will host and over 250 attendees will enjoy an evening of wine, gourmet tapas, live entertainment, dancing and silent auction at The Brighton Convention Center, (Toronto). Proceeds from the Great Gourmet Give will transform communities of women and children living in extreme poverty. Tickets are available at HATN.org at a cost of $175. 

As a 100% volunteer-run organization, HATN relies on the support of generous individuals and businesses to further our commitment of changing lives community by community. HATN embraces global community partnerships with a focus on clean drinking water, healthcare and education.

HATN’s ambitious goal to raise $50,000 will be used in Jammeh Kebbeh, the Gambia to:

• Build a Bush Hospital to provide life-saving healthcare and maternity care for 9,000+ villagers who currently have little to no access.
• Install a water tower with a closed drilled well for the hospital. Finding and collecting water consumes a large portion of time and worry for women and children. Village wells are either broken and unsafe and water when available is undrinkable by most standards. The well at the hospital will be shared with the community.

Our projects…

4 Schools & 4 Health Clinics Built | 200 Water Filters Installed | 22 Sanitation Facilities & Greenhouses Built

HATN projects are a testament to our dedicated volunteers, donors and sponsors. Today, classrooms overflow with eager students ready to learn. Women attend night school. Medical aid is accessible, affordable and saving lives; increasing life expectancy, opportunity and hope. 80% of the water filters continue providing clean drinking water for over 10,000 lives.

Thank you in advance for your contribution consideration. We will provide donor recognition on website, social platforms, event program and public announcements.

With Gratitude,

The Great Gourmet Give Team

As a Mainstay Insurance client you know that we do NOT allow independent contractors to be included on benefit plans.  There are a number of reasons for this.  CRA does not allow non-employees, most insurers will not change contract wording to include non-permanent employees, and most importantly, there is considerable liability created for both the the employer and employee if they are deemed as such.  We never want the benefit plan to be the “final nail in the coffin” that redefines an independent contractor as an employee.

In Ontario (as of Jan.1, 2023), things are getting a bit messier, but maybe also a bit clearer at the same time.  If you work with business or information technology consultants, then please read the info below and reach out to your HR or employment lawyers if you have questions.

On January 1, 2023, an amendment to the Ontario Employment Standards Act, 2000 (“ESA”) came into force that creates a new exemption for business and information technology (IT) consultants.¹ This means that if an individual meets the criteria for a “business consultant” or “information technology consultant” under the ESA, then the consultant is excluded from the application of the ESA. If that is the case, then the employer does not have to comply with the minimum employment standards set out in the ESA with respect to the consultant.

Employers should consider whether this new exemption applies to any individuals in their Ontario workforce. In addition, it is also a good reminder for employers to consider whether they are up to date on key exemptions from employment standards legislation in all of the provinces and territories in which their business operates, as the exemptions do vary by province and territory.

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Here are some of the recent changes, and others coming in the near future.  Though not directly benefit related, it is a good checklist to reference and ensure you are on-side with.  Any questions, reach out to your employment lawyer or applicable professional.

Effective January 1, 2023, private companies incorporated in Ontario must establish and maintain a Register of individuals with significant control (“ISCs”)

Effective December 18, 2022, Employment Insurance (“EI”) sickness benefits were extended permanently from 15 weeks to 26 weeks.

Effective June 1, 2023, Ontario’s Occupational Health and Safety Act (“OHSA”) has been amended to require that certain employers provide and maintain a naloxone kit in workplaces

Ontario employers can no longer enter into non-competition agreements

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Near the end of December, I shared the Ontario Dental Fee guide increases and at that time, we were still waiting to hear on the other provinces and their adjustments for 2023.  They are now out and the averages are included below.

In addition to the fee guide increase, employers also have trend and utilization drivers to cost (using more of the services, and using them more often, in addition to paying more for the same service). We are seeing these costs show up (already) with the first months dental claims being higher than normal, and do not anticipate that abating.

On the drug side of things, costs are continuing to stay stable, but having an employee with one of the nearly 200 high cost drugs (over $10,000 a year), can have a huge affect on renewal pricing (but we have solutions).  A post in Pension and Benefits Monitor Magazine today stated…

Prescription drug expenditures by Canadian public drug plans increased by 4.2 per cent in 2020/21, bringing annual spending to $12.3 billion, says a Patented Medicine Prices Review Board (PMPRB) report. The use of higher-cost medicines has been the primary factor behind rising costs for public plans over the past five years and this pressure continues to build, it says, as in 2020/21 high-cost drugs accounted for over one third of total drug costs and yet were only used by 2.5 per cent of drug plan beneficiaries. The 10 highest-cost drugs reimbursed by the public drug plans were all rare disease treatments with annual treatment costs of over $200,000.

Put together the dental and drug inflation, trends and utilization increases and we expect to see larger than average renewal rates in the next few years.

As always, we share our numbers HERE.

If you’re in the IT or Business Consulting space you need to be aware of these changes

It may actually mean now is the time to make some of those contractors into employees, rather than just having them treated that way by the Ontario Employment Standards Act (ESA).

Each year the various provincial dental associations set the suggested dental fee guide for the coming year.  Most dentists follow this guide to charge for the regular work they perform (there are also specialists guides and orthodontics are different again).  Most insurers also use them as a guide for ensuring a fair amount is paid (like a reasonable and customary (R&C) table) for the reimbursement of dental claims.

2023 is looking to be the highest increase I’ve seen in my 26 years in the business.  This is likely in response to the higher costs incurred during the pandemic and the recent jumps in the inflation rate.  So far, we’ve heard from Ontario with an increase of 8.5%, Quebec at 9.8%, Manitoba 5.25%, PEI 5.77%, Saskatchewan 5.62%, and Alberta with 6.0%.

On top of the fee guide adjustment, which increases the cost for the service, we are also seeing increases in trend (coming back more often) and utilization (sitting in the chair for longer).  Together these will mean dental costs will increase by about 10% if you are an AVERAGE user.  Plans facing their first year renewal (with a new plan) will often see much higher increases as employees get work done that had been put off until the plan was put in place.

The ODA Suggested Fee Guide

Ontario dental fees may also be influenced by the ODA’s annual Suggested Fee Guide. The Guide lists every dental service that dentists may perform. It also outlines dental codes and suggested fees for each specific service. Both dentists and dental plan providers may use the Guide as a reference point to help inform service fees.

Dentists are not required to follow the Guide or any fee schedule. They set their own fees based on the factors influencing their individual practice. This means that your dentist’s fees may vary both above and below the Guide. 

Many dental plan carriers will base their plan coverage on fees and codes within the Guide. In some cases, the coverage may be based on previous years’ Guides (going back a year or more). Dental plan providers do not work with the ODA to develop the Guide.

Dental Costs Explained

The Globe and Mail has reported that Ontario is prepared to implement a biologic and biosimilar mandatory switching policy following leaders like British Columbia, New Brunswick, Alberta, Saskatchewan and PEI.  The new strategy is expected to take place on March 31, 2023 and phase in over the year. 

So what does this mean to you and your employees?  Biosimilars are similar (but not the same) as generic drugs and have a reduced cost compared to the Biologic drug they replace.  The costs of the drugs themselves are in the tens of thousands of dollars a year, so the savings can be significant and anywhere from 17 to 50% off the comparator drug.   

Once this program goes into place, those that use the Ontario Drug Benefit plan (ODB), such as; seniors, those on Ontario Works, or the Trillium Drug Benefit will be made to switch to the cheaper biosimilar drug (unless there is a medical reason not to). Most employee benefit plans will mirror that change (Green Shields has been for years already), requiring the employee to change.  This will help control the costs paid by the employer (and often shared with the employee).  Expect to see more on this in the coming year.

“Under the new policy, there will be a nine-month transition period that is set to start March 31. That will allow patients time to have discussions with their care providers about what the changes mean, as well as their options. Certain patients will be exempt from mandatory switching, such as those who are pregnant and people with certain types of cancer, the government official said.”

https://www.theglobeandmail.com/canada/article-ontario-mandatory-drug-swap-generic/